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INSTRUCTIONS
Answers are to be marked on the Otr{R Mswer sheet following the inshuctions
provided there upon.
Handover bg& the question paper bookler and the OMR answer sheet at the nd of
the examination.
Thc Question Paper has ggg_jglq PART-A and PART-B. There are 100
t ooklet
M.A. Entrance Examination, June 2012
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Department of Economics ,
5. Given the function f(x): -7x2 + 126x-23 ,thevalue of the second order derivative
w.r.t. x when x:9 is equal to
A. zero
B. 12
c. -12
D. -14
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6.Which of the following statements is true in the context of correlation analysis?
A. Conelation measures the degree of linear association between fwo variables
B. There is no distinction between the variables as "dependent" and "explanatory"
variables.
C. Both variables are assumed to be random variables.
D. All of the above statements are true
8. For a cobb-Douglas utility function u(Xr, Xz) = XrXz , for given income level and
prices of Xr and Xz which of the following is true?
10. Goods and Service Ta4 which is going to be introduced in due course of time in lndia is
aimed at:
A. including service tax into indirect taxes along with commodity taxes
B. including customs tarifils with excise duties
C. creating multiple tax rates with commodities with different elasticities.
D. creating a unified tax for all goods and services
A. Inter-industry Trade
B. Intra-industry trade
C. Trade based on economies of scale
D. Trade based on imitation gaps and product cycles
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12. For all positive data sets containing at least one pair of nonequal values the relationship
between the Arithmetic Mean (A.M.), Geometric Mean (c.M.), and Harmonic mean
(H.M.) is
fo 6 o)
lr s 2l
is L;
; ;)
A. 25
B. 70
c. -65
D. -78
15. Given the demand function Q:20 - 5P, the elasticity of demand at p:3 is
A. -l
8.5
c. -3
D.0
16. Ricardo's theory of comparative advantage is based on:
A. The opportunity Cost theory
B. The law of diminishing returns
C. The labour theory of Value
D. All ofthe above
A. positively sloped
B. vertical
C. negatively sloped
D. horizontal
22' Country A can produce cars using eight workers in a day and a fridge
using three
workers in a day yhele as in country B a car requires six workers
uia u r.iig* requi.es
two workers per day. which of the following statement is true?
3?,. IMF gives structural adjustment loans by imposing the conditions such as:
A. Devaluation of overvalued exchange rate and reduction of fiscal deficit
B. Introduction of land reforms
C. Creationof more employment
D.lncrease in the Public Distribution System
33. Which ofthe following statement is TRUE in the case of a linear supply curve?
A.If the supply curve intersects the Horizontal axis then elasticity of supply is less than
unity
B. If the supply curve intersects the Vertical axis then elasticity of supply is greater than
unity
C. If the supply curve intersects the origin then elasticity of supply is equal to unity
D.All ofthe above are true statements.
34. It is given that P is a set of all positive integers and Q is a set of all negative integers.
Then,
A. 'oP intersection Q" is a null set
B. "P union Q" is a null set
C. *P intersection is Q" is the universal set
D. All of the above
35. One box contains 8 white and 3 red balls. If two balls are drawn at random at a time
without replacement, the probability that both are white is:
A.-ll
29
A\
'"
B.
46
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55
D.None ofthe above
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36. Which ofthe following is NOT a function?
A. Y--2x*7
B. y2=x
C. Y:X2
D. Y=X
37. If m: n:3 : 2,then the ratio of (4m + 5n) : (4m * 5n) is:
A. 30 :20
B. 11: I
C. 6:5
D. 9: -l
38. The level of output q, at which the average cost (AC) will be minimum, where the AC:
q"-5q+8is,
A.8
B. 2.5
c. -5
D. None of the above
c. 0 to 100
D. -100 to +100
41. The difference between Gross National Product (GNP) and Gross Domestic Product
(GDP) is:
A. GNP- GDP = Transfer payments
B. GNP- GDP = Govemment taxes
C. GNP - GDP = Imports and Exports
D. GNP - GDP: Net Factor Income from Abroad
42. Suppose that economists estimate that consumers spend 80% of any increase in their
disposable income. If the aggregate price level is fixed, and government spending
increases from Rs.2 trillion to Rs.3 trillion in an year, the total change in GDP as a
result of government spending is:
A. Rs.l0 trillion
B. Rs.15 trillion
C. Rs.s trillion
D. Rs. I trillion
43. Which of the following statement is true?
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A. Differentiability of a function is a necessary
condition for the continuity of the
function
B. continuity is a necessary condition for differentiability of the function
C. continuity of a function is a sufficient condition for differentiability of the function
D. Differentiability of a function is both a necessary and sufficient condition for the
continuity of the function
44. How many different samples of size n : 2 can be taken from a finite population of size
n: 10?
A. 35
B. 40
c. 4s
D. 65
A. CV>EV>ACS
B. EV>ACS>CV
C. EV>CV>ACS
D. CV>ACS>EV
53. Let Money be measured on the y-Axis and commodity x on the x_axis in
an
indifference map between the two. If the price consumption
curve for X commodity is
horizontal then it implies that demand curve for this commodify
is
A. horizontal
B. positively sloped
C. venical
D. a rectangular hyperbola
55. In the theory of the firm, the shut down point is where:
A. the market price is just sufficient to cover fixed cost
B. the total cost is equal to total revenue
!. tlr larket price is just sufficient to cover average variable cost
D. the firm makes only normal profits
56. If marginal propensity to consume is 0.75, then the income multiplier in the economy
is:
A.4
8.3
c.5
D.6
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57. An individual's Utility function is concave with respect to income. This implies that:
A. The individual is a risk taker
B. The individual is risk neutral
C. The Individual is risk averse
D. The Marginal Utility ofmoney is constant
59. Applying the Marginal cost pricing rule to an Monopoly firm that experiences
economies of scale over the relevant output range
A. Results in welfare being maximized
B. Results in a loss to the firm
C. Results in an increase in profits to the monopoly
D. Helps protect the monopoly from entry
62. Assuming a downward sloping linear demand curve and a constant Marginal cost of
production, the dead weight loss due to monopoly pricing ( as against the marginal cost
pricing rule) is
A. equal to the profits ofthe monopolist
B. is roughly equal to 1/3 rd ofthe monopoly profits
C. is equal to one half of the monopoly profits
D. is equal to one fourth of monopoly profits
63. According to Marx, surplus value refers to:
A. surplus of statutory minimum wages
B. surplus labour over necessary labour of workers
C. over time of workers
D. none of the above.
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64. Given two conformable matrices J and z,whichof the following is true?
A. JZ *ZJ
B. J+Z*Z+l
C. J_Z+_Z+T
D. All ofthe above are true
66. Which of the following is true ofthe Harmonic Mean as a measure of central
tendency?
A.Its value is based only on all of the observations of the sample
B. It gives the largest weight to the smallest items.
C. Its value cannot be computed when there are zero or both positive and negative
items
D. Allof the above
70. If MC = 2- 0.4q+ 3q? is the marginal cost (MC) function of a firm where q is the level
of output, the total variable cost (TVC) at q : l0 units will be:
A. zero
B. 100 units
C. Cannot be calculated from the given data
D. 1000 units
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71. India's current income tax rates have the following slabs:
A. 10Yo;2Ao/o and30o/o
B. 20o/o;30o/o and 50o/o
C. l0o/o;25o/oand35Yo
D. fi%;25% and 45Yo
72. The sum total of deviations of the given set of observations from their arithmetic mean
is
A. always zero
B. gteater than zero
C. between one and zero
D. none ofthe above
74. Accordingto The Economy Survey,India's Real GDP at factor cost in the year 20ll-
12 has registered a growth rate of:
A. 4s%
B. 9.2%
c. 85%
D. 6.9%
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78. Chamberlin's theory of monopolistic competition assumes
A. large number of sellers and buyers in the 'group'
B. products are differentiated, yet they are close substitutes
C. free entry and free exit of firms in the 'group'
D. all of the above
79. Minimum Support Prices for agricultural commodities are announced on the basis ot
A. Cost of Production
B. Inter-crop price parity
C. Inflationary situation in the country
D. All of the above mentioned factors
80. The share of output in GDP of the informal sector in the India estimated by the
National Sample Survey is:
A. 90%
B. 650/o
c. t3%
D. 40%
81. When the law of diminishing retums begins to operate, the total variable cost curve
begins to
A. fall at an increasing rate
B. rise at a decreasing rate
C. fall at a decreasing rate
D. rise at an increasing rate
82. The probabilities that a woman will buy a new dress for a party at three shops, 1,?,3
are0.22,0.18, 0.35 respectively. The probability that she will buy a new dress at one
ofthese shops is:
A. 0.50
B. 0.33
c. 0.75
D. 0,25
83. The Aggregate Demand Curve is the Keynesian model is downward sloping because
of:
A. negative relation between price level and income
B. Wealth effect and Interest Effect on Aggregate Expenditure
C. Law of Diminishing Aggregate Marginal Utility
D. All of the Above
84. Green Revolution technology in Indian Agriculture is observed to have created:
A. Interregional disparities
B. Intercrop disparities
C. A skewed consumption pattern in favour of superior cereals
D. All ofthe above
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85. Kuznet Curve is a relationship between:
A. Growth and development
B. Poverfy and growth
C. Poverfy and inequality
D. Inequality and income
86. There is a growing demand from developing countries that developed countries should
. reduce the subsidies in agriculture. This is known as an argument for:
A. Free Trade
B. Fair trade
C. Equal trade
D. Unequaltrade
87 . In order to make banking sector stronger to face financial risk, Basel -I noruns
suggested:
A. An increase in deposit mobilization
B. An increase in CRR and SLR
C. An increase in the deposit-credit ratio
D. An increase in the capital adequacy ratio
A. 9%
B.6%
c. 3%
D. 0%
A. Banking Reforms
B. Financial Sector Reforms
C. Public Sector Reforms
D. Tax Reforms
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93. Farmers' suicides in Indian agriculture have occurred in the post-reforms period in
Indian economy partly due to
A. Decreased share of institutional credit and failing terms of trade
B. Increased production risk and increased cost of cultivation
C. Falling productivity and reduced agricultural extension
D. All ofthe above mentioned factors
94. The demand function for a certain text is given by P :20
- 0.0002e. What amount of
output would the author like to be sold if he wants to sell as many books as possible?
A. 5000
B. 50,000
c. 12,00
D. 14,000
96. Indifference curves in demand analysis are convex to origin, which implies that
A. consumer's preferences will change with substitution one commodity for the other.
B. consumer prefers to give up more of a commodity for every additional unit of the
other commodity
C. consumer prefers to give up successively less of a commodity for every additional
unit of the
other commodity
D. consumers substitute equally one commodity against the other.
97.The optimum level of output for a perfectly competitive firm is given by the point where
A. Marginal Revenue equals Average Cost
B. Average Cost equals Marginal Cost
C. Marginal Revenue exceeds Marginal Cost by the greatest amount
D. Marginal Revenue equals Marginal Cost and Marginal Cost is rising
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98. When both the perfectly competitive firm and industry are in long run equilibrium
A. P=MR:SMC=LMC
B. P=MR:SAC=LAC
C. P = MR: lowest point on the LAC curve
D. All of the above
Where P: price of output, MR: Marginal Revenue, SAC Short Run Average Cost, SMC
:
Short Run Marginal Cost, LAC: Long Run Average Cost
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